Crown Pacific Reports Lowered Q3 Earnings, Predicts Same for Q4

PORTLAND, OR-Crown Pacific Partners LP is reporting a better than 20% drop in third quarter net income, in part due to a significant drop in lumber prices.

Third quarter profits were $6.6 million or 22 cents a share, compared to profits of $8.6 million or 28 cents a share in the third quarter of 1999. Third quarter revenue was also down in 2000, falling to $190.3 million from $219.1 million in the same 1999 period. Operating income for the third quarter was $20.4 million, compared to $20.9 million for the third quarter of 1999.

Through the first nine months of 2000, Crown Pacific is reporting profits of $21.9 million or 71 cents a share, on revenues of $636.3 million. The first nine months of 1999 produced profits of $26.2 million or 86 cents a share on revenues of $590.4 million. Operating income for the first nine months of 2000 was $64.1 million, compared to $63.6 million over the same 1999 period.

Compared to the third quarter of 1999, lumber prices have dropped almost 38%, from $493 per thousand board feet last year to $307 per thousand board feet in the quarter just ended, says Crown Pacific president and chief executive officer Peter W. Stott. The company expects fourth quarter results to approximate third quarter 2000 levels and fall within the range of 18-to-23 cents per share.

The company made two other announcements this week: that shareholders of record on Nov. 3 will receive a distribution on Nov. 14 equal to 56.4 cents a share, and that Richard B. Keller, 72, has retired from its board of control.